1. Why is an NRI wanting to buy property back home ?

To an NRI, a base in the homeland also brings with it a sense of security. The number of NRIs who are investing in property for sentimental reasons and for better investment returns is quickly multiplying. The government including RBI and Foreign Exchange Management Act has liberalized the rules and regulations for the NRIs to make investment in real estate. Liberalization along with the added advantage of repatriation of the capital invested and even the rental proceeds under the circumstances prescribed by RBI have also encouraged NRI investments in real estate. Capital gains can be taken back after paying capital gains tax. Apart from India being a safe destination, 10 to 12 per cent returns on the investments are assured.

2. Can NRIs obtain loans for buying a house/flat for residential purpose from financial institutions providing housing finance?

Reserve Bank has granted general permission to certain financial institutions providing housing finance to grant housing loans to non-resident Indians for acquisition of houses/flats for self-occupation subject to certain conditions.

3. Why do financial institutions consider NRIs a safer bet for home loans ?

NRIs are considered the safer bet eligible for availing a home loan in India facility to purchase a property in India as they are prompt on repayment. The repayment of the home loan can be made through a normal banking channel by way of inward remittance. For those who earn an income in India through rent, dividends, pension, etc the loan can be repaid by way of direct debit into the accounts of Non-residents (External) [NRE] or Non-resident Indians. The existing balances in the Non-Resident (Non-Repatriable) rupee accounts have been allowed to be credited on maturity to convertible NRE account. This has boosted the real estate business.

4. Why are NRIs preferring to buy homes in India ?

What has also made NRIs flock to India has been the initiative by builders and real estate dealers to ensure transparency about the projects on offer and fairness in dealings. NRIs consider their investments to be safe and rewarding when they park their money in real estate India. Many developers in Mumbai, Gurgaon, Pune, Delhi, Gujarat and Kerala have decided to plan expensive projects. The vast majority of NRIs is spread across the globe is one of the prime reasons that a large number of builders and developers are making painstaking efforts to woo the non-resident Indian. The Indian real estate developers are leaving no stone unturned in tapping the overseas markets. High-quality construction in India is attracting huge NRI investment in real estate. The surge in demand came as soon as the investment laws were revised to aid NRIs in moving their investments freely in and out of the country.

NRIs have been buying property in India over the years to have a good real estate portfolio back home.